The Digital Yuan in the Digital Era and the Challenges for Thai Businesses

Abstract

This academic article adopts a systematic literature review to examine the current status of the Renminbi (RMB) in the digital era and its impact on the global financial system. It analyzes the Chinese government’s strategy in developing the Digital Yuan, the factors affecting China’s domestic and global economic systems, and the responses of the Bank of Thailand to digital financial developments. The study also considers the overall economic implications and future challenges for the Thai business sector. The findings suggest that the adoption of the Digital Yuan remains limited and is currently in the pilot implementation phase. Chinese users generally perceive its role in daily transactions as marginal, considering it merely an alternative payment instrument alongside Alipay and WeChat Pay. Despite its relatively low penetration, the Chinese government continues to advance strategic policies to promote the Digital Yuan both domestically and internationally as part of its broader financial modernization agenda. These developments may generate spillover effects on the Thai business sector, particularly in cross-border trade and e-commerce transactions. Consequently, Thai enterprises must proactively enhance their institutional readiness to ensure legal and regulatory compliance when entering Chinese e-commerce platforms. Furthermore, the Bank of Thailand, as the key monetary authority, should expedite the formulation of policy frameworks to facilitate potential digital currency interoperability with the People's Bank of China. Such strategic adaptation would strengthen cross-border payment infrastructure, support tourism and bilateral trade, and mitigate the risk of opportunity loss in an evolving digital financial landscape.